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Bitcoin at $44,000: Options Market Sends Mixed Signals Amid Highs

Summary:
As Bitcoin maintains its elevated position around ,000, the options market is showing mixed signals, according to options data tracking website Greeks.Live. Notably, both Bitcoin and Ethereum block trades have witnessed a prevalence of put buying, with a combined value of 0 million. The dominance of put options, amounting to million for BTC and million for ETH, suggests a widespread sentiment among institutional players favoring bearish positions. Of particular significance are the sizable trades involving out-of-the-money (OTM) options, such as P1,600 for BTC and P37,000 for ETH, set to expire at the end of January. These trades underscore the inclination of prominent market players – referred to as giant whales – to bolster their bearish positions during a

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As Bitcoin maintains its elevated position around $44,000, the options market is showing mixed signals, according to options data tracking website Greeks.Live.

Notably, both Bitcoin and Ethereum block trades have witnessed a prevalence of put buying, with a combined value of $100 million. The dominance of put options, amounting to $13 million for BTC and $88 million for ETH, suggests a widespread sentiment among institutional players favoring bearish positions.

  • Of particular significance are the sizable trades involving out-of-the-money (OTM) options, such as P1,600 for BTC and P37,000 for ETH, set to expire at the end of January.
  • These trades underscore the inclination of prominent market players – referred to as giant whales – to bolster their bearish positions during a period of heightened market sentiment.
  • Greeks.Live urged traders to exercise caution, recognizing the potential for downside risks within the options market.
  • Starting from mid-October, Bitcoin has experienced a substantial surge, with its value increasing by more than 60%.
  • This revived optimistic outlook stemmed from the anticipation of a change in the monetary policy of the Federal Reserve and the strong probability of the launch of a much-anticipated spot Bitcoin ETF.
  • As for the latter, Derebit had recently revealed that traders in the options market were increasingly placing bullish bets on Bitcoin reaching $50,000 by January.
  • This aligns with the digital asset financial service platform’s Matrixport projection of a $50,000 Bitcoin price towards the end of January 2024 following an SEC approval.

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